Burberry sees recovery with profits rising to £723m
EMEIA saw the biggest hit to store sales with a decline of 17% from pre-Covid levels.
Burberry Group plc has increased its operating profit expectations to grow by 35%, following a 5% increase in revenue to £723m in the 13 weeks ending 25 December 2021 (Q3 FY22), compared to £688m for the same period in 2020 (FY21).
Full-price sales surged in the third quarter, increasing 26% compared to pre-Covid levels and 15% year-on-year. Burberry said this is driven by “ongoing strength” in the Americas and a material improvement in Asia Pacific.
Total comparable store sales also increased by 7% from FY21, although it fell 3% from pre-Covid levels.
Additionally, EMEIA store sales growth fell by 17% in Q3 FY22. However, Burberry said it was “encouraged” by the performance, given the “ongoing drag” from the lack of tourists, which accounted for around 40% of pre-pandemic revenues.
Burberry made further progress in outerwear and leather goods categories, with full-price outerwear sales growing 38% from pre-Covid levels.
The luxury goods company said it has “strengthened its position” through new, younger consumers, who are driving double-digit full-price sales growth across all product categories.
Gerry Murphy, chair of Burberry, said: “Full-price sales continued to grow at a double-digit percentage compared with two years ago, accelerating from the previous quarter and reflecting a higher quality business. Our focus categories outerwear and leather goods performed strongly as we continued to attract new, younger consumers to the brand.
“Despite the ongoing challenges of the external environment, we are confident of finishing the year strongly and providing an excellent platform on which to build when our new CEO Jonathan Akeroyd joins in April.”
